Barbados could lose its investment grade rating if Government’s debt ratios deteriorate further over the next 12 to 18 months.
That was the warning from Moody’s Investor Services, a New York-based international rating agency, as it offered some disclosures on the Baa3 rating it assigned Barbados last year when it downgraded the country to the lowest investment-grade position.
If Barbados wanted to get an improved outlook from the negative one it assigned last year, Moody’s said the country would have to show that Government was “likely to exceed current expectations regarding the pace of fiscal consolidation”.
It also had to show that economic growth was likely to pick up on a sustained basis, and Government had to demonstrate “a credible plan to successfully reverse the recent increase in debt ratios.”
Read the full story in today’s MIDWEEK NATION.
